More Gains Ahead? By TipRanks
Shares of NICE Systems (NICE) have never missed shareholders’ expectations in each of the various subperiods in the past five years, outperforming the over the past three months.
As the stock is a strong catalyst for rising share prices, this trend will continue. This is why I believe this stock should be bought. (See NICE stock charts on TipRanks)
Headquartered in Ra’anana, Israel, NICE is a global provider of enterprise software solutions that support small, mid, and large businesses to improve their customer service experiences and ensure compliance with policies in the workplace.
The solutions can be used on-premises or cloud technology to combat fraud and corruption and protect citizens and businesses.
Q2 Financial Results
In addition to the rapid growth of the business across global markets, the rising adoption of the company’s cloud contact center software, especially by large enterprises, caused total revenue for the second quarter of 2021 to increase by 16% on a year-over-year basis. By $9.1 million, total revenue beat analyst projections.
The proforma average proforma profit per year increased by almost 15%, surpassing the consensus estimate by $0.06.
Also, the company reported an increase of proforma gross margin by 120 basis points, to 72.2%. However, the operating margin was unchanged at 28.2%.
Recent Business Developments for Future Growth
In September, the company announced several relevant business developments. NICE is now more prominent in global markets for financial crime solutions due to its strategic partnership agreements with KOHO Financial in Toronto, Canada, and Tata Consultancy Services Limited in India.
NICE will also expand the use of its cloud-based software in Canada thanks to its deal with BCE (NYSE :), Canada’s biggest telecommunications services provider.
Looking ahead to full-year 2021, the company projects proforma total revenues between $1.84 billion and $1.86 billion, up approximately 1.93% from the previous guidance range.
Proforma dilute EPS is expected to rise 1.1% from the earlier guidance range, at $6.26 to $6.46.
On total revenue between $1.84 billion and $1.86 billion, analysts expect EPS to range from $6.27 to $6.45.
Wall Street’s Take
In the past three months, five Wall Street analysts have issued a 12-month price target for NICE. NICE’s average price target of $337.40 is a 21% upside. Five Buys are the basis of the consensus analyst rating.
The company participates in, and promotes, the digital transformation that is taking place in the various industrial sectors.
NICE can increase its sales and profit by entering into important business deals with other companies. The stock price must continue to climb.
Disclosure: Alberto Abaterusso didn’t hold any positions in the securities discussed in this article at the time it was published.
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